Time is running out for decisions to be made on committing cash to new facilities needed to ensure the survival of a large chunk of Teesside's steel works

Grants are expected to play a crucial part in helping Teesside Cast Products, which employs more than 1,700, switch from supplying Corus's internal business to selling its slabs into international markets.

A year ago Corus dropped the bombshell with restructuring plans that will see TCP cut adrift from the main group by 2006.

Around #16m needs to be spent upgrading local wharves to ship out the 3.4m tonnes that will have to be exported each year if TCP is to survive.

Top level talks are going on over whether Government or European cash will be available to help pay for the work.

But those involved have to prove that the expanded facilities would benefit the wider business community.

This is because European rules prevent state subsidies directly helping one industry.

As Colin Muncie, managing director of TCP, says: "If the money was spent on a wharf purely for Corus somebody would cry foul."

The wheels have already been set in motion when it comes to gearing up for handling increased steel exports from Teesside.

But a lot more needs to be done and the timetable is very tight.

Corus and PD Teesport are in talks about accessing grants to contribute towards the #16m which needs to be spent upgrading local port facilities.

But today Colin Muncie, managing director of Teesside Cast Products, revealed that the deadline is looming.

"People need to be making decisions, because of the lead-in time needed to do the work, by the summer of this year."

Development of a local deep water port and infrastructure that can handle 3.4m tonnes a year of slab is vital to the future of steel production on Teesside.

To survive as a viable, stand-alone company in 18 months' time TCP must be able to reach these export levels.

An action plan has been drawn up, which is split into two parts.

Currently PD Teesport can handle up to 1m tonnes of slab a year and a #7m investment would see that capability increase to 2m.

Corus proposes to develop the wharf directly behind its South Bank coke ovens at a cost of #9m to export up to 1.4m tonnes annually.

Discussions have been going on for months about tapping into grants to help pay for the work.

Mr Muncie said: "Since the back end of last year I have been talking to One NorthEast (the regional development agency) and a number of other stakeholders about how we move that development forward."

But, he added, securing grants was not an easy process.

TCP has to demonstrate its business plan is robust and that its wharf development would benefit the wider business community, he said.

Mr Muncie added: "If the money was spent on a wharf purely for Corus somebody would cry foul. We have to demonstrate the wharf is more than just for Corus to make this happen."

Corus is currently examining who else could make use of the wharf.

Extensive work will be required to bring it up to scratch.

Mr Muncie said: "We need to dredge the river in front of the wharf to get the depth of vessel we require which is 40,000 tonnes.

"There is structural work required and cranes, storage and a rail link - we don't want slab coming by road from the slab making areas."

PD Teesport bosses have also been exploring what grants may be available.

Martyn Pellew, business development director of PD Ports, Logistics and Shipping, said: "We will need significant capital investment in order to cope with significantly larger export volumes.

"The decision still has to be made about future commercial co-operation between TCP and PD Teesport but we remain very upbeat about helping TCP.

"But it also clearly needs to be recognised these decisions need to be taken fairly soon in order that we can achieve the necessary implementation of the enhanced rail facilities and general cargo handling capabilities including re-laying out work areas for loading ships and acquiring additional crane capacity."

He added: "The possibility of local, national or European grants or subsidies is one that needs to be explored by the working party involving Corus, TCP and PD Teesport.

"This is obviously very urgent as the deadline for committing capital is fast approaching."

But in the meantime PD Teesport has recently invested #360,000 in two new forklift trucks - one 32 tonne and the other 42 tonne - for Tees Dock.

They have been bought to support the increase in steel from Corus being exported through the dock as well as to maximise the efficient handling of goods for other companies which use the port.

Mr Muncie said last week's announcement by Corus that it is investing #32m in modernising its steel rod and plate-making plant at Scunthorpe was good news for TCP.

While TCP is trying to test the water when it comes to exporting it still has to supply Corus internally.

Mr Muncie said the upgrade at Scunthorpe will "liberate capacity here for export".

He revealed export slab sales for the first quarter of year were ahead of plan.

TCP expects to ship out 400,000 tonnes of slab this year.

He is confident that TCP will be able to compete on the open market when it becomes a stand-alone business in 18 months' time.